Orbiter helps brokers switch to advice based model

Online sourcing and compliance service Orbiter is helping advisers move the focus of their mortgage income from a procuration to an advice-based fee model.

The system now lists the products of over 120 lenders, enabling virtual whole of market advice to be offered.

The events of the last 18 months have seen procuration fees fall dramatically while deals available to borrowers direct from lenders have become increasingly attractive.

Orbiter is advising brokers to adjust to this and generate their income via a fee for their advice rather than relying on lender procuration fees.

This enables advisers to earn income even if their advice to their clients is to apply to a lender direct.

Andy Brown, managing director of Orbiter, says: “We built Orbiter in the midst of the credit crunch and ensured we had the flexibility to deal with a number of eventualities, including a move towards fee based advice.

“Our sourcing engine includes products available through intermediary and direct to consumer distribution channels and this is proving extremely useful to advisers in the current market climate.

“Sourcing systems offering intermediary products only are not able to match our offering, and with over 120 lenders we cover virtually the whole of the market.“

Julian Wells, industry consultant, says: ”You can bury your head to the disintermediation of the mortgage market, but it’s happening, like it or not.

“Claims that intermediaries will die out are far fetched, but a recent AMI study claims the intermediary share of the market could drop below 50% in the near future.

“If this happens then it will be hard for advisers to operate with credibility without considering non-intermediary products in their advice to clients.”